Fixed Pricing Policy Coursework Example | Topics and Well Written Essays - 250 words - 1

Fixed Pricing Policy - Coursework Example These may include menu-based pricing, activity-based pricing, and cost per drop. Most specifically the various fixed pricing strategies are based on the customer's demand and market expectations (Özer & Phillips, 2012). Consumers tend to experience two roots of value for a product. One is acquisition utility, and the other is transaction utility, these are what forms part of the consequences should a fixed pricing policy apply. Acquisition utility implies utility of obtaining a given product while on the other hand transaction utility implies the difference between the featured price and a subject's reference price. Through fixed pricing policy, consumers are able to decide for the time they will pay for better service provided and when it would be logical to order to reduce impulse buying (Nagle, 2011). These may include menu-based pricing, activity-based pricing, and cost per drop. Most specifically the various fixed pricing strategies are based on the customers demand and mark et expectations (Özer & Phillips, 2012). Consumers tend to experience two roots of value for a product. One is acquisition utility, and the other is transaction utility, these are what forms part of the consequences should a fixed pricing policy apply. Acquisition utility implies utility of obtaining a given product while on the other hand transaction utility implies the difference between the featured price and a subjects reference price. Through fixed pricing policy, consumers are able to decide for the time they will pay for better service provided and when it would be logical to order to reduce impulse buying (Nagle,